Knowing how to compare good faith estimates from mortgage companies will help you make an educated decision when deciding which lender to use.
Lender Fees: You should start by comparing good faith estimates that are for the same rate. This will level the playing field and allow you to determine who has the best offer based on fees. The top section of the good faith estimate will have all of the fees from the lender. There are various fees so to make it easy concentrate on the total from each.
Title and Escrow Charges: While you will drive yourself crazy comparing title and escrow services especially since most of the deals are business-to-business deals between lenders and these companies you will see there is a difference in cost depending on the company you are paired with. When choosing a lender if their fees are $300 more expensive but the third party fees are $600 cheaper, the overall fees to you are less.
Different title and escrow companies have different rates. The difference in savings can come down to who your lender has chosen to work with. Some companies have negotiated rates that include the signing service as part of the fees which saves you up to $200 which is a typical fee for a notary.
The bulk fees from title and escrow companies are almost always less because they are being controlled by the same company and the economies of scale allow them to discount the title and escrow piece which in turn gets you a better overall cost.
The most important thing is that these fees can be different and working with a lender that has your overall bottom line in mind is a benefit. A lender with no financial interest in this side of the transaction that still works to deliver a better end product is a lender you want to align yourself with.
Estimate Date: Check the date on the estimates you are receiving. The mortgage market is constantly changing with rates going up and down. If you compare one estimate from one company and another estimate from the second company and they are done on different days you cannot get an accurate gauge of who is more competitive.
Trust: The good faith estimate is just the beginning of your transaction. You feel comfortable in the way the company has presented themselves and with that they will deliver. Do they have any complaints against them? Your financing can be a very painless and transparent process as long as you work with the right company.
The more informed you are the easier your loan process will go. - 16928
Lender Fees: You should start by comparing good faith estimates that are for the same rate. This will level the playing field and allow you to determine who has the best offer based on fees. The top section of the good faith estimate will have all of the fees from the lender. There are various fees so to make it easy concentrate on the total from each.
Title and Escrow Charges: While you will drive yourself crazy comparing title and escrow services especially since most of the deals are business-to-business deals between lenders and these companies you will see there is a difference in cost depending on the company you are paired with. When choosing a lender if their fees are $300 more expensive but the third party fees are $600 cheaper, the overall fees to you are less.
Different title and escrow companies have different rates. The difference in savings can come down to who your lender has chosen to work with. Some companies have negotiated rates that include the signing service as part of the fees which saves you up to $200 which is a typical fee for a notary.
The bulk fees from title and escrow companies are almost always less because they are being controlled by the same company and the economies of scale allow them to discount the title and escrow piece which in turn gets you a better overall cost.
The most important thing is that these fees can be different and working with a lender that has your overall bottom line in mind is a benefit. A lender with no financial interest in this side of the transaction that still works to deliver a better end product is a lender you want to align yourself with.
Estimate Date: Check the date on the estimates you are receiving. The mortgage market is constantly changing with rates going up and down. If you compare one estimate from one company and another estimate from the second company and they are done on different days you cannot get an accurate gauge of who is more competitive.
Trust: The good faith estimate is just the beginning of your transaction. You feel comfortable in the way the company has presented themselves and with that they will deliver. Do they have any complaints against them? Your financing can be a very painless and transparent process as long as you work with the right company.
The more informed you are the easier your loan process will go. - 16928
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Before committing to a mortgage company visit this site to compare mortgage rates and request a good faith estimate.
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